Dah Sing Investor Confidence Index Holds at 68 as Hong Kong, US Stock Outlooks Improve
SingTao · 1 SOURCESabout 3 hours ago2 MIN
Summary
Dah Sing Bank released its second annual Investor Confidence Index on Monday, reporting a reading of 68—unchanged from the previous year and maintaining a "positive and relatively strong" level. The survey, conducted by Milwardrate Market Research Consultants among 1,000 Hong Kong investors, revealed that overall investors expect average returns of 7.7 percent, slightly down from 7.9 percent last year. Research Director Chung Sai-man noted that despite geopolitical tensions, interest rate volatility, and market fluctuations over the past 12 months, investor confidence remains resilient. Looking ahead, 88 percent of respondents indicated they will maintain or increase their investment allocations in the coming year, with only 12 percent considering reducing their exposure.
Key Points
- Dah Sing Bank's Investor Confidence Index stands at 68 for 2026, unchanged from 2025, reflecting sustained positive sentiment among Hong Kong investors .
- Average expected investment returns declined slightly to 7.7 percent from 7.9 percent last year, while 59 percent of investors reported positive returns over the past 12 months .
- High-net-worth investors with assets exceeding HK$8 million posted the strongest performance, with 81 percent achieving positive returns and a confidence index of 75 .
- The S&P 500 expected upside has nearly doubled to 17 percent from 8 percent last year, signaling growing optimism toward US equities among Hong Kong investors .
- Technology remains the top investment theme for the second consecutive year at 58 percent, followed by energy transition and healthcare, though 49 percent express concerns about AI sector overheating .
Why It Matters
The resilient investor confidence reading at 68 suggests Hong Kong investors are adapting to navigate persistent macroeconomic uncertainties, including potential Federal Reserve rate moves and geopolitical headwinds. The doubling of S&P 500 upside expectations signals that Hong Kong investors are increasingly tilting toward US markets even as domestic equities remain competitive, which could influence capital flows across the region. With 88 percent of investors planning to maintain or increase their positions, the survey indicates sustained appetite for risk assets that could support market liquidity and trading volumes in Hong Kong through 2027.
The resilient investor confidence reading at 68 suggests Hong Kong investors are adapting to navigate persistent macroeconomic uncertainties, including potential Federal Reserve rate moves and geopolitical headwinds. The doubling of S&P 500 upside expectations signals that Hong Kong investors are increasingly tilting toward US markets even as domestic equities remain competitive, which could influence capital flows across the region. With 88 percent of investors planning to maintain or increase their positions, the survey indicates sustained appetite for risk assets that could support market liquidity and trading volumes in Hong Kong through 2027.